Illegal Websites Offering to Sell Employer Identification Numbers for a Fee are Fraudulent
Grabbing Your Government Goods Without Getting Grifted
This friendly reminder: scammers are out to swipe your cash by peddling you stuff you can grab for free — even government services like that Employer Identification Number (EIN). The Federal Trade Commission's ringing the alarm about fraudulent websites masquerading as the IRS, charging a whopping $300 to file paperwork for your EIN.
Luckily, you can nab an EIN without splashing the cash. The application is entirely free on the genuine IRS website, and it only takes a few minutes to complete. An EIN, a corporate identifier for filing taxes, is mandatory for anyone launching a business, estate, or nonprofit, or for households employing folks like nannies.
How the EIN swindle unfolds
These bogus services are deceiving consumers by either impersonating the IRS or misrepresenting their connection in the following ways:
- Stealing the show with IRS symbols, logos, formatting, colors, fonts, layouts, and snaps on their websites and ads
- Hiding in plain sight with "IRS" in their domain names or websites
- Using the catchy title "EIN Assistant"
- Being secretive about their lack of IRS affiliation
- Failing to make it crystal clear that payments are all service fees, for the record: EINs are a freebie
These scammers aren't just restricted to EINs. They're milking it by hoodwinking consumers to pay for government services like the Trusted Traveler Programs. While these programs do charge a fee, you won't have to part with a penny for the application itself. (Bear in mind, enrollment providers contracted by TSA PreCheck vary fees slightly between $67 and $78.)
How to claim your EIN – on the house
Should you need an EIN, you can breeze through the application using the IRS's EIN Assistant tool. You'll need to provide essential info about your business' construction, as well as personal details like your name, address, contact info, and tax ID. Upon completion and confirmation, your EIN will flash before your eyes in less than 15 minutes, given you've got all your deets in check.
With this information, you're now geared up to steer clear of EIN application scams lurking on the web. Always apply for your EIN directly from the IRS's official website and official communication channels. The IRS hands out EINs for free.
- Be wary of look-alike sites and emails: Scammers concoct sites and emails that mimic the official IRS site to catch you off guard. For example, sites like "irs-ein.org" have been spotted as fraudsters, charging fees and dishing out fake EIN confirmations[2].
- Suspicious fees: The IRS does not demand a red cent for applying for an EIN. If a site or service asks for payment, it's likely a scam[2].
- Funny email addresses: Fake confirmation or EIN emails often arrive from addresses that don't match the official IRS domain or contain irregularities—for example, addresses like "[email protected]"[2].
- Pressure tactics: Scammers might create a false sense of urgency or rush you into action, a common tactic in phishing attempts[4][5].
- Shoddy grammar or spelling: Phishing attempts often have lousy grammar, spelling mistakes, or poor language usage in official lingo[4].
To protect yourself from EIN application scams:
- Use official IRS channels: Always file your EIN request on the official IRS website or verified IRS communication channels.
- Ignore unsolicited requests: Never share sensitive details like your Social Security number, bank info, or financial data in response to phone calls, emails, or messages unless you originally reached out to the IRS.
- Verify website authenticity: Be cautious of sites with unfamiliar or misleading domain names pretending to be the IRS.
- Report suspicious activity: If you spot a suspicious site or receive fishy communications, inform the Better Business Bureau (BBB) Scam Tracker or the Federal Trade Commission (FTC).
- Educate and protect: Educate employees or anyone engaged in your business about phishing and scam warning signs. Maintain strong computer security, and regularly monitor your business registration information for unauthorized changes.
Additional tips to secure your information
- Acquire an IRS Identity Protection PIN (IP PIN) if you're concerned about identity theft. This six-digit number fortifies your tax filings and is available for individuals with Social Security Numbers or ITINs[1].
- If you suspect you've been snared, promptly contact your bank or credit card provider to safeguard your finances, and report the scam to IRS and consumer protection agencies[2][3].
By applying for your EIN through official IRS channels, staying vigilant about fraudulent communications, and practicing solid cybersecurity, you'll be able to nimbly identify and evade EIN application scams on the web.
The scammers are posing as the IRS and charging $300 to file paperwork for an Employer Identification Number (EIN), which you can obtain for free on the IRS's official website. Be cautious of look-alike sites and emails, suspicious fees, funny email addresses, pressure tactics, and poor grammar or spelling. Protect your information by using official IRS channels, ignoring unsolicited requests, verifying website authenticity, reporting suspicious activity, educating employees, acquiring an IRS Identity Protection PIN, and maintaining strong cybersecurity.
To secure your finance and business, be ready to enroll in the EIN application directly from the IRS's website and watch out for scams. The IRS never demands payment for an EIN, and if you suspect any unfair activity, report it immediately to the Better Business Bureau (BBB) Scam Tracker or the Federal Trade Commission (FTC).
